onsemi Q3 FY2026: revenue up 11.1%, gross margin 41.4%
onsemi beat its own guidance again: revenue of $1.72 billion rose 11.1% year over year and gross margin of 41.4% marked a fifth straight sequential gain. Earnings grew faster than sales, which is what a chip maker refilling idle fab capacity should look like. The story is a cyclical recovery plus an AI power business management says nearly tripled, and next quarter's guidance points higher again.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $0.79, up 25.4% from $0.63; non-GAAP EPS was $0.90, up 42.9%. The "4x earnings growth" in the headline is the non-GAAP comparison, so strip out $40.1 million of special items before comparing it to anything. Operating income of $378.3 million was 22.0% of revenue versus 17.0% a year ago, which is the real proof of operating leverage.
Revenue of $1.72 billion rose 11.1% from $1.55 billion a year earlier and 7.4% from $1.60 billion in Q2. PSG did the lifting at $889.9 million, up 21.0% year over year, while AMG ($597.3 million) and ISG ($235.1 million) each grew only about 2.0%. Gross margin of 41.4% was 350 basis points better than a year ago, so the mix shift is profitable, not just bigger.
Q4 guidance of $1.715–1.815 billion has a $1.765 billion midpoint, implying 15.4% growth over the $1.530 billion reported in Q4 2025 and 2.5% sequentially. Non-GAAP gross margin guidance of 41.5–43.5% would make it a sixth consecutive quarter of expansion. Management has beaten its own midpoint four quarters running, though the beats were small — the largest was $33 million.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-02
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